Podcast Summary: What the Fundraising — Episode 233: Fundraising from Family Offices with Trust & Strategy with Kerrie Mitchell

Introduction and Guest Background

In Episode 233 of What the Fundraising, host Mallory Erickson welcomes Kerrie Mitchell, Managing Partner at FSO Partners, a philanthropic advising firm. Kerrie, along with her identical twin sister and a global team, brings over two decades of nonprofit experience to the table. Their firm focuses on assisting curious nonprofits and family offices eager to lead with purpose and harness the power of philanthropy for meaningful progress.

The Importance of Family Offices in Nonprofit Fundraising

Kerrie Mitchell delves into the often-overlooked realm of family offices and their significance in the nonprofit sector. She emphasizes that as wealth becomes increasingly concentrated, understanding and engaging with family offices becomes crucial for nonprofits aiming to secure substantial and sustained funding.

"The wealthier the person, probably the less trustful they are because somebody always needs something from them. So truly, what is the speed of trust? What is the power of that relationship is going to be even more important..." (00:38)

Building Trust with Family Offices

A central theme of the conversation is the paramount importance of trust in cultivating relationships with family offices. Kerrie explains that family offices prioritize trust and nuanced relationships due to their unique position of wealth management and philanthropy.

"What is the speed of trust? What is the power of that relationship is going to be even more important, and it's going to be very nuanced." (00:38)

She highlights that family office staff value genuine connections and due diligence, especially in uncertain times such as government funding freezes. Establishing trust involves demonstrating reliability, understanding their values, and aligning philanthropic goals.

Understanding Family Office Structures

Kerrie provides clarity on the infrastructure of family offices, distinguishing them from other philanthropic entities like community foundations. She explains that family offices, whether single or multi-family, typically require substantial assets (often $50 million or more) and are driven by five primary motivations: privacy, control, legacy, technology, and family services.

"If typically families or an individual is not going to even look at establishing a single family or even joining a multifamily office type of structure unless they have, I'd say 50 million, but honestly, it's probably more of like a 100 million of assets." (08:31)

Strategies for Engaging Family Offices

Kerrie outlines effective strategies for nonprofits to engage with family offices. She advises starting with wealth advisors who manage family office assets and emphasizes the importance of personalized, experiential fundraising. Building relationships through mutual trust and understanding the specific needs and values of family offices can lead to meaningful and lasting partnerships.

"We have to figure out what they value, what they need and meet them there." (07:54)

The Role of Relationship Fundraising

The episode underscores the shift from transactional to relationship-based fundraising. Kerrie advocates for fundraisers to focus on creating authentic connections rather than just asking for money. This approach not only builds trust but also ensures that the philanthropic goals of both parties are aligned.

"If you are somebody who's jumped out of your lane with good intentions, you can listen, you can. You are primed to actually understand what is needed to build trust in the family office space." (19:23)

Challenges and Solutions in Building Relationships

Kerrie acknowledges the challenges fundraisers face, such as the non-linear nature of relationship building and the uncertainty it brings. She recommends leveraging relationships with wealth advisors and conducting thorough research to identify and connect with suitable family offices. Additionally, she emphasizes the importance of being willing to walk away if there's no alignment, maintaining the integrity of the relationship.

"If you are not the right fit, if, when you're talking to folks, if you are like, this is the value we bring... be willing to share with your friends." (15:39)

Practical Tips for Fundraisers

To assist fundraisers in navigating the complexities of engaging with family offices, Kerrie offers several actionable tips:

1. Start with Wealth Advisors: Identify and build relationships with wealth advisors who manage $50 million and above.

2. Personalized Approach: Treat family offices as unique entities, understanding their specific values and philanthropic goals.

3. Experiential Fundraising: Create experiences that allow family members to connect with your organization and understand the impact of their contributions.

4. Due Diligence: Provide comprehensive information and metrics that demonstrate your organization's effectiveness and accountability.

5. Reciprocal Relationships: If a family office isn't the right fit, recommend compatible organizations, fostering a network of trust and mutual support.

"True, like pure hack. What wealth advisors are going to value... is that you are going to listen, that you're going to do all those other things..." (21:24)

Conclusion and Final Thoughts

Kerrie Mitchell emphasizes that effective fundraising with family offices hinges on building trust, understanding their unique structures, and fostering genuine relationships. By stepping outside traditional fundraising methods and embracing a relationship-focused approach, nonprofits can unlock new avenues for impactful and sustained funding.

Mallory Erickson concludes the episode by encouraging listeners to implement the insights shared and to engage with Kerrie Mitchell through FSO Partners for further guidance.

Notable Quotes with Timestamps

• Kerrie Mitchell: "The wealthier the person, probably the less trustful they are because somebody always needs something from them. So truly, what is the speed of trust? What is the power of that relationship is going to be even more important..." (00:38)

• Kerrie Mitchell: "If typically families or an individual is not going to even look at establishing a single family or even joining a multifamily office type of structure unless they have, I'd say 50 million, but honestly, it's probably more of like a 100 million of assets." (08:31)

• Kerrie Mitchell: "We have to figure out what they value, what they need and meet them there." (07:54)

• Kerrie Mitchell: "If you are somebody who's jumped out of your lane with good intentions, you can listen, you can. You are primed to actually understand what is needed to build trust in the family office space." (19:23)

• Kerrie Mitchell: "True, like pure hack. What wealth advisors are going to value... is that you are going to listen, that you're going to do all those other things..." (21:24)

Resources and Further Engagement

For listeners interested in exploring fundraising strategies with family offices, Kerrie Mitchell recommends visiting fsopartners.com and connecting on LinkedIn under her profile, Kerrie Mitchell. Additionally, she holds a CAP certification, which can be accessed through her LinkedIn profile.

Final Note

This episode of What the Fundraising provides invaluable insights into the nuanced world of family offices and their intersection with nonprofit fundraising. By prioritizing trust and relationship-building, fundraisers can effectively engage with high-impact donors and secure meaningful support for their missions.